Broad-Based Black Economic Empowerment (B-BBEE) compliance is a process and should be viewed as long-term as opposed to a short-term once off event. We offer various solutions to assist clients to achieve a compliant BEE Status.
This document seeks to provide an in-depth explanation as to how the process of implementing B-BBEE for your organisation will be rolled out.
BEE is a complex business task which consumes a considerable amount of time and resources. It needs a strategy planned with commercial logic, which is then properly implemented and monitored in a way that makes complete business sense.
Choosing the appropriate competitive B-BBEE strategy is a sophisticated endeavour requiring knowledge and familiarity with the minute intricacies of the B-BBEE Act and Codes of Good Practice. The lack of expertise in many companies countrywide hampers the successful implementation of the B-BBEE Codes in their operations.
Salient Tasks and strategic approach
Plan of Action
Our Managed Services offers a high quality streamlined step-by-step approach to becoming BEE Compliant. These 10 steps to becoming BEE compliant form the foundation for future development and improvement on your BEE scorecard while ensuring optimal success is reached from the start.
1) Learn about BEE – Training and knowledge transfer.
Knowledge of B-BBEE will equip relevant stakeholders with the know-how required to properly implement BEE. Training will ensure staff actively become involved and identify existing BEE activities.
2) Internal Scorecard – Internal scorecard representing your current accurate BEE Status.
Our consultants will request relevant information pertaining to all aspects of the BEE scorecard from you. This will help us further understand your business activities while also allow us to start targeting key aspects on your BEE scorecard.
This step is designed to help drive organisational performance to higher levels. It will help affirm strengths and identify weaknesses.
3) Establish BBBEE Policies and Creating of a Document Pack – We will establish various BBBEE policies and present applicable documentation required by the B-BBEE Codes.
Documentation and proof is the fundamental principle used by a verification agency to award BEE points. Without appropriate documentation, points cannot be awarded. This step introduces a comprehensive document pack which contains various documents – customised by our consultants. We also create a foundation for you to easily store and manage your BEE Documentation. This ensures all the relevant information is readily available and in a format that a verification agency understands.
In addition, we will now begin offering you regular reports detailing current status.
4) Draft Scorecard – This step involves producing the initial BEE scorecard rating.
We will use our online software tools (EconoBEE Version 4 and BEE Procured) to help our consultants calculate an accurate BEE Scorecard. These tools will be accessible to relevant staff during the entire process giving you all access to all data throughout this process.
5) Gathering documents to support your claim on the scorecard – We now begin gathering source documentation or creating documentation that will be required. This will either involve our consultants requesting this information from the relevant stakeholder or attempting to gather documentation directly from the source. We will constantly monitor your BEE status during this process to ensure no points are lost.
The document pack will be very useful for storing internal company records.
We will also identify common aspects where companies have already invested in some, if not all of the 7 elements of empowerment but have difficulty in claiming those initiatives.
6) Scorecard Improvement – Write a report – Scorecard, Profiles and Strategies – display your scorecard level, how you achieved the points and identify ways to improve that.
Once a draft scorecard has been prepared and all documentation is gathered our consultants will assist you with a practical strategy. This strategy is aimed at increasing the number of points, reducing the time spent and reducing the overall cost of each point. We will revisit the scorecard to ensure that every single point has been accounted for and documentation thereof provided.
We will assist you optimise your points through strategic advice and practical thinking that ultimately makes complete business sense.
7) Development and implementation of the B-BBEE strategy by spending time and effort and earning the points
After the scorecard has been produced, our consultants will provide a plan of action to implement the B-BBEE strategy. This will provide an indication of what has to be done to improve the company’s B-BBEE scorecard in the coming rating period.
8) Do a final assessment
The current year’s BEE Scorecard rating is nearly complete. The current scorecard can now be inserted onto a company letterhead, signed and submitted to customers to show a commitment towards BEE. This scorecard will then be submitted to a verification agency for auditing. As this is the final self-rating phase, caution is used to guarantee no documented evidence is forgotten or overlooked.
9) Look for ways to find more points on the scorecard – BBBEE is a process, not a once off event.
At this point we will help you find additional points, prepare a scorecard for future years and check to ensure you have not left something out.
10) Verification – get an independent accredited organisation to audit your scorecard (Auditors or Verification Agencies)
This is the very last step and offers assurance that your scorecard is correct. The verification agency is there to provide an impartial, independent and detached measurement. They are not able to offer advice in the same way EconoBEE is not able to offer the verification.
Our consultants can identify suitable verification agencies and hold your hand during the process. The document pack prepared earlier will be used by the agency to verify information. If applicable our consultants will sit in during the verification agency meetings and final audit. They will also act on your behalf to “argue” your case to a verification agency to ensure you earn all the points you deserve.